Latest news with #RM1.4
New Straits Times
10 hours ago
- Business
- New Straits Times
Establish a National Maritime Blueprint for geopolitical resilience and Blue Economy growth
The recent India-Pakistan hostilities are another international occurrence that may trigger supply chain setbacks while countries are concurrently struggling with the US reciprocal tariffs. With the ongoing South China Sea issues ranging from big powers' rivalry and assertive behaviour that may disrupt maritime trade, Malaysia must carefully navigate geopolitical repercussions and dampen the geo-economic shock. This strategic pressure is amplified by Malaysia's deep maritime dependence. Located between the South China Sea and the Straits of Malacca, its economic heartbeat heavily depends on the ocean. The Academy of Sciences Malaysia estimated that in 2020, Malaysia's blue economy contributed 21.3 per cent of Malaysia's GDP. By 2030, it is forecasted to increase significantly, potentially reaching 31.5 per cent of GDP and totalling around RM1.4 trillion. Malaysia's maritime interests are substantial, built upon Petronas' offshore oil and gas operations which contribute around 20 per cent of national GDP, alongside a RM16 billion fishing industry, and maritime trade comprising 98 per cent of its international commerce. These sectors also sustain the livelihoods of countless Malaysian citizens across all states. Any disruption, whether internal or external, threatens both national prosperity and individual well-being. The risks and threats in the maritime domain remain contentious and, more often than not, loom large, potentially impeding Malaysia's maritime economy. Concurrently, Malaysia faces challenges on multiple fronts in defending its national interest: internal leakages and corruption, domestic differences including growing calls for greater autonomy in Sabah and Sarawak, evolving transnational threats, persistent maritime disputes, and the intensifying geopolitical rivalry. In recent decades, the South China Sea has evolved into a critical security flashpoint where Malaysia maintains legitimate claims under the United Nations Convention on the Law of the Sea (UNCLOS). An alarming increase in dangerous incidents throughout the region demands our attention. Though Malaysia has experienced fewer confrontations than our regional neighbours, concerning episodes, including the 2020 West Capella standoff, PLA's aircraft incursions into Malaysian airspace, and persistent harassment of vessels operating within our Exclusive Economic Zone, serve as key reminders that enhanced maritime governance and security are not optional but essential. Malaysia stepped up efforts in safeguarding its national interests in 2020 by launching the inaugural Defence White Paper (DWP) to strengthen its national defence and lay the foundation for the nation's security strategy. Crucially, the DWP projected Malaysia as a 'maritime nation,' signalling a strategic vision that places the maritime domain at the core of its national interests. As the DWP undergoes its mid-term review approaching 2025, it's clear that while it provides overarching guidance on protecting sovereignty and sovereign rights, the focus is not on the granularities of maritime governance itself. Therefore, complementing the DWP with specific, actionable policies is imperative. Malaysia needs dedicated measures to realise the potential of its 2030 blue economy goals, shielded from the contentious maritime environment. Therefore, a coherent national maritime blueprint is the necessary instrument to achieve this. Encouragingly, under the administration of Prime Minister Datuk Seri Anwar Ibrahim, the discourse on maritime governance and security has gained notable traction. Discussions in parliament and public statements have increasingly touched upon protecting territorial integrity, harnessing the blue economy, and modernising maritime assets. Furthermore, the National Security Council's (NSC) ongoing development of a new national security policy is eminently important and timely. Yet, discourse and broad policy must translate into coordinated actions. Now is the opportune moment for Malaysia, in its quest as a maritime nation and racing against escalating geopolitical tensions, to formulate a dedicated national maritime blueprint. The increasing uncertainty in global politics, which directly impacts Malaysia's vast interests in the maritime sphere, especially the South China Sea, makes such preparedness paramount. A foundation that prescribes more effective coordination between key agencies with maritime interests at the federal and state levels will allow Malaysia to project a united front, and in turn, eliminate any loopholes that render a siloed culture. This is necessary to allow the country to better navigate global uncertainty that seeks to jeopardise national progress regardless of whether its origin is internal, bilateral, or multilateral. A national maritime blueprint can provide a guideline for seamless coordination of actions between federal and state agencies in protecting national borders This blueprint must be a living strategic document that assesses Malaysia's maritime capabilities across defense, economic, and developmental dimensions, crafting a cohesive strategy to navigate geopolitical uncertainties. It must encompass a clear vision and objectives, placing Malaysia's long-term ambition as a maritime nation at the forefront. Success depends on embracing a "Whole of Government, Whole of Society" (WoGoS) approach that aligns national priorities above all, not driven by any single entity or state, but rather shaped through an engagement of all stakeholders. The WoGoS approach must form the cornerstone of both planning and implementing Malaysia's maritime blueprint. This framework ensures that all relevant perspectives, from security agencies to economic interests to environmental concerns, formulate a coherent national strategy. The blueprint can establish foundational governance structures and coordination mechanisms that could eventually evolve into a governing formality. Such a framework would also drive asset modernisation through transparent processes where non-military stakeholders provide essential oversight, ensuring that procurement decisions serve national interests. The maritime blueprint must be conceived as a long-term strategic instrument for safeguarding Malaysia's maritime interests against evolving threats. Its success hinges on meaningful engagement with key constituencies: nurturing maritime awareness among the youth that will inherit far more complex challenges; securing support from MPs who shape policy frameworks; and addressing the specific concerns of coastal communities whose livelihoods depend directly on our waters. A comprehensive national maritime blueprint represents a historic opportunity for the current administration to establish a long-lasting legacy to contend with contemporary challenges. By articulating a clear vision for Malaysia as a maritime nation and embedding this identity in key guiding policy documents, the government can ensure that Malaysia's maritime interests remain protected for generations to come, regardless of shifting geopolitical headwinds.
The Sun
2 days ago
- Business
- The Sun
Kelantan targets bigger onion output for nation
BACHOK: Kelantan aims to contribute significantly to the country's onion production with a total planting area of 30.85 hectares involving seven districts in the state. Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud said the implementation of the onion planting project in the state is a strategic step in strengthening the country's food security and reducing dependence on imported onions. 'This onion planting project is an important initiative that not only helps raise the income of state agri-entrepreneurs, but also contributes towards the stability of the country's food supply. 'To date, 26.85 hectares of land have been cultivated involving 52 agri-entrepreneurs in 37 project locations and the implementation will continue to be expanded with a total of 30.85 hectares covering the Bachok, Pasir Mas, Pasir Puteh, Jeli, Kuala Krai, Machang and Tanah Merah districts,' he told reporters after opening the Kelantan State Onion Plantation Project 2025 at the Permanent Food Production Park (TKPM) in Telong, here today. He said that if successful, the 26.85-hectare site will produce 108 tonnes of onions with a value of approximately RM700,000 in just three months of planting. Mohd Nassuruddin also praised the commitment of the Kelantan State Agriculture Department which has made this pilot project a success with an allocation of RM1.4 million for this year following the successful implementation earlier last year. 'We are aware that 100 per cent of the country's onion needs are still imported from foreign countries such as India and China, with total imports in 2022 reaching 685,400 metric tonnes worth RM1.58 billion. This is a worrying figure and requires comprehensive efforts,' he said. He said Kelantan was among the states entrusted by the Ministry of Agriculture and Food Security to lead this project along with other states such as Perak, Selangor, Perlis, Penang and Pahang. 'it is hoped this project is the starting point for greater commitment by all parties to make the national food security agenda a success. Agriculture is no longer a peripheral sector but an important core to sustainable economic development. 'The state government and related agencies will continue to intensify strategic cooperation with the federal government to ensure that the national onion production target can be successfully realised by 2030, thus reducing the government's dependence on imported onions by 30 per cent,' he said.
Business Times
16-06-2025
- Business
- Business Times
Petronas looks abroad to help cut production costs
[KUALA LUMPUR] Malaysia's state-owned oil and gas company Petronas is looking to expand output from more affordable assets abroad in an effort to cut production costs and rein in declining profits. Petronas is seeking to produce oil at a break-even level of US$50 per barrel, from US$60 to US$70 in the past five years, said Mohd Jukris Abdul Wahab, the chief executive officer of Petronas' upstream business, which includes exploring, developing and extracting oil and gas. The firm will focus more on countries where it already has a presence, including Canada, Suriname, Brazil, Turkmenistan and several South-east Asian nations. Still, Petronas does not rule out going into a new country if it provided 'headroom for us to grow', he added. 'We want to reshape the entire portfolio,' Jukris said in an interview on Jun 13 on the 79th floor of the steel-clad Petronas Twin Towers in Kuala Lumpur. 'We are preparing ourselves, moving into a more volatile environment in the future.' Petronas is shifting its strategy as a drop in crude prices from a recent peak in 2022 slashed profits and forced the company to lower dividends. The state-owned company said earlier this month that it will cut about 10 per cent of its workforce to reduce costs. While crude prices recovered some of the lost ground on Friday (Jun 13) after Israel's air strikes on Iran fuelled concerns of a wider conflict in the Middle East, the supply-demand outlook for oil points to more pressure in the longer term. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'Any capital deployment for our international asset has got to provide a healthy return,' Jukris noted. 'We are dealing with a lot more risk in some of the geographies that we are present.' Petronas' woes pose a challenge for Malaysia's government, which relies on the company for billions of US dollars in income. The national oil company has pledged RM32 billion (S$9.7 billion) in dividends this year, down from RM50 billion in 2022. The firm said in September that over the 50 years since its inception in 1974, it had injected RM1.4 trillion into the nation's economy through dividends, taxes and cash payments. The company plans to increase the net present value of its international upstream contributions to about 60 per cent within the next five to 10 years, from about 40 to 50 per cent now, said Jukris, who started his career at the firm in 1990. Petronas produces the equivalent of about two million barrels of oil per day in Malaysia and around 700,000 barrels abroad, Jukris said. To maintain this level of production in the face of declining output from older assets the company needs to bring in new fields, he added. Even as Petronas looks for new assets abroad, Jukris is optimistic that Malaysia's reserves will last for 'years to come', because investors keep making new discoveries. He said that there is still untapped potential in the country, including off the coast of Peninsular Malaysia where international oil companies have shown interest to explore. 'For the last 10, 15 years, we have been saying that our reserves will last only 15 years,' Jukris said. 'So today, we will also last another 15, 20 years.' BLOOMBERG
Business Times
16-06-2025
- Business
- Business Times
Malaysia's oil giant Petronas looks abroad to help cut production costs
[KUALA LUMPUR] Petroliam Nasional (Petronas), Malaysia's state-owned oil and gas company, is looking to expand output from more affordable assets abroad in an effort to cut production costs and rein in declining profits. Petronas, as the company is known, is seeking to produce oil at a break-even level of US$50 per barrel, from US$60 to US$70 in the past five years, said Mohd Jukris Abdul Wahab, the chief executive officer of Petronas' upstream business, which includes exploring, developing and extracting oil and gas. The firm will focus more on countries where it already has a presence, including Canada, Suriname, Brazil, Turkmenistan and several South-east Asian nations. Still, Petronas does not rule out going into a new country if it provided 'headroom for us to grow,' he said. 'We want to reshape the entire portfolio,' Jukris said in an interview on Jun 13 on the 79th floor of the steel-clad Petronas Twin Towers in Kuala Lumpur. 'We are preparing ourselves, moving into a more volatile environment in the future.' Petronas is shifting its strategy as a drop in crude prices from a recent peak in 2022 slashed profits and forced the company to lower dividends. The state-owned company said earlier this month that it will cut about 10 per cent of its workforce to reduce costs. While crude prices recovered some of the lost ground on Friday (Jun 13) after Israel's air strikes on Iran fuelled concerns of a wider conflict in the Middle East, the supply-demand outlook for oil points to more pressure in the longer term. 'Any capital deployment for our international asset has got to provide a healthy return,' Jukris said. 'We are dealing with a lot more risk in some of the geographies that we are present.' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Petronas' woes pose a challenge for Malaysia's government, which relies on the company for billions of US dollars in income. The national oil company has pledged RM32 billion (S$9.7 billion) in dividends this year, down from RM50 billion in 2022. The firm said in September that over the 50 years since its inception in 1974, it had injected RM1.4 trillion into the nation's economy through dividends, taxes and cash payments. The company plans to increase the net present value of its international upstream contributions to about 60 per cent within the next five to 10 years, from about 40 to 50 per cent now, said Jukris, who started his career at the firm in 1990. Petronas produces the equivalent of about two million barrels of oil per day in Malaysia and around 700,000 barrels abroad, Jukris said. To maintain this level of production in the face of declining output from older assets the company needs to bring in new fields, he said. Even as Petronas looks for new assets abroad, Jukris is optimistic that Malaysia's reserves will last for 'years to come', because investors keep making new discoveries. He said there is still untapped potential in the country, including off the coast of Peninsular Malaysia where international oil companies have shown interest to explore. 'For the last 10, 15 years, we have been saying that our reserves will last only 15 years,' Jukris said. 'So today, we will also last another 15, 20 years.' BLOOMBERG
New Straits Times
16-06-2025
- New Straits Times
Customs seize RM1.4mil ganja at Rantau Panjang duty-free zone
RANTAU PANJANG: The Customs Department seized more than 14.398kg of ganja worth over RM1.4 million at the Rantau Panjang Duty-Free Zone on May 27. Kelantan Customs Department director Wan Jamal Abdul Salam Wan Long said acting on a public tip-off, the enforcement team found a suitcase left unattended in the area at 9.15pm "Checks showed there were 10 transparent plastic packets suspected to contain ganja flowers found inside the suitcase," he said in a statement today. "At the same time, a Thai national carrying another bag at the same location was also inspected. "We found 15 more transparent plastic packets, also suspected to contain ganja flowers." Initial investigations showed the suspect had used a smuggling route along Sungai Golok, entering the country through an illegal base and exiting via the duty-free zone. "The case is being investigated under Section 39B of the Dangerous Drugs Act 1952 for drug trafficking," he said. Wan Jamal added that such smuggling activities not only result in revenue losses for the country but also pose a threat to national security and public wellbeing.
